There's never been a better time to start an Australian business as innovation prepares to take the baton from the mining boom, Prime Minister Malcolm Turnbull says.
"Our innovation agenda is going to help create the modern dynamic 21st century economy Australia needs," he told reporters in Canberra as he launched the government's innovation package.
Mr Turnbull says Australia is on the doorstep of Asia, the world's economic engine room, with businesses able to compete for customers anywhere in the world.
The internet and technologies it enabled meant Australia was part of a truly global marketplace, allowing companies to grow.
"No matter where they are located ... they can sell their products and services just about every corner of the globe," Mr Turnbull said.
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But he warned Australia was falling behind when it came to commercialising good ideas, ranking last among OECD countries for business research collaboration.
Mr Turnbull said Australia's universities, research organisations and workforce were world class.
"But Australia is falling behind when it comes to commercialising good ideas and collaborating with industry," he said.
Australia consistently ranked last or second-last among OECD countries for business research collaboration.
Increasing collaboration between business, universities and the research sector was absolutely critical for Australian businesses to remain competitive.
"Companies that embrace innovation, that are agile and prepared to approach change confidently and with a sense of optimism are more competitive, more able to grow market share and more likely to increase their employment," Mr Turnbull said.
Mr Turnbull hoped the package would be the precursor to a very long 21st century ideas boom.
"This package is designed to inspire, it is designed to lead.
"It is designed to encourage every single business to be more innovative."
